• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 2 hours EU has already lost the Trump vs. EU Trade War
  • 11 hours Impeachment S**te
  • 53 mins Article: Did Exxon only make $39 Million onshore U.S. last quarter ?
  • 4 hours More dumbed down? re Hong Kong Act of Congress
  • 18 hours 55.00 WTI
  • 3 days Science: Only correct if it fits the popular narrative
  • 2 hours Visualizing Pennsylvania Oil & Gas Production (Through September 2019)
  • 2 days IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 4 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 1 day Everything You Need To Know About Trump
  • 3 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 20 hours Water, Trump, and Israel’s National Security
  • 2 days Crazy Stories From Round The World
  • 2 days ‘If it saves a life’: Power cut to 1.5 million Californians
  • 1 day Last I Checked
The Five Biggest Enemies Of Oil & Gas

The Five Biggest Enemies Of Oil & Gas

The oil and gas industry…

Oil Sinks As Trade War Sentiment Turns Sour

Oil Sinks As Trade War Sentiment Turns Sour

Oil prices sank on Tuesday…

Mexico’s Pemex To Drill 3x More New Wells In 2019

Pemex oil storage

Pemex will drill three times more new wells this year than previously planned, Reuters reported, citing the company’s chief executive. This should boost production by 300,000 bpd by 2022, which would be a new record, CEO Octavio Romero said at a presentation.

Pemex has been struggling with declining oil and gas production for over a decade. The previous government opened up the industry to foreign investment by organizing several tenders for oil and gas blocks in a bid to reverse the fall. The new government, however, has suspended tenders until it reviews the contracts signed by the previous administration.

The Obrador administration has prioritized the increase in local oil and gas production and to this end earlier this year provided a US$3.6-billion lifeline for Pemex, who had accumulated uncomfortable amounts of debt—US$106 billion—over the past few years. Boosting production is crucial for the company and the government, which has promised better energy security for Mexico.

“In Petroleos Mexicanos’ entire history, it has perhaps never developed 20 new fields in one year,” Romero told media, adding that these measures should help production begin to climb up as early as this year. At the moment, it is 1.68 million bpd but, Romero said, “We can expect this level of production to be maintained and that it will begin to grow from this year.”

President Andres Manuel Lopez Obrador has promised that by the end of his term in office, Mexico will produce almost 2.5 million bpd of crude – a level close to the 2013 average of 2.522 million bpd.

As part of the production decline reversal plan, Pemex also increased its spending plans for this year. In December, the company said it had budgeted US$23 billion for 2019, up by 15 percent on 2018. Half of the total will be directed towards exploration and production, with some onshore deposits also benefitting from the investment alongside shallow-water blocks. Exploration in the deep waters of the Gulf of Mexico, however, will be put on hold.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play